Concept of ERP in SCM24/09/2022 1 By indiafreenotes
Supply chain management plays an important role in the overall success of a business, especially for the manufacturing industry. Manufacturers rely on partners and vendors to supply them with the right type and amount of resources at the necessary time to keep production moving according to schedule. However, and according to a recent 2021 State of Manufacturing Report, “97% of respondents report supply chain management consumes a significant amount of employee’s time.” Supply chain management can be a cumbersome and time-consuming process if not managed efficiently, and ineffective management can inhibit productivity, cause delays, affect quality, and result in unnecessary expenses and profit loss.
As manufacturers expand, supply chain management can become an even more essential component of a smart business plan. That’s where Enterprise Resource Planning (ERP) software can greatly help businesses simplify and optimize their supply chain management processes for smoother and more profitable outcomes.
Benefits of ERP on Supply Chain Management:
The valuable role of ERP in supply chain management can’t be stressed enough. ERP software has had a dramatic impact on the way businesses are able to operate, with a direct correlation to business growth. Effective ERP and supply chain management are critical ingredients to business expansion and success. When sourced from supply chain experts like QAD, these systems consolidate supply chain operations under a single dashboard, providing visibility and more streamlined coordination with suppliers and vendors. Manufacturing ERP software can also automate supply chain processes so that employees can be more productive in other areas.
- Improved Efficiency
- Order Tracking
- Helps in Decision making
- Minimize the Delay
- Improves Productivity
- Eliminate Errors
- Inventory Optimization
- Reduce Cost
Benefits of Using ERP in a Supply Chain Management Strategy
Adding ERP software to your supply chain management strategy is a game changer. Some of the primary ERP supply chain benefits users experience that lead to measurable business growth include the following.
Efficient Managing Demand & Procurement
ERP automates demand planning, creating demand upon receiving orders. When an order is received, the software implements scheduling. Team members are able to see real-time information about how resources are being used in production and can better plan production jobs and product delivery. Warehouse resource management, transportation of materials, and other supply chain tasks can be automated or optimized to improve efficiency as well.
Reliable Processing & Documentation
An ERP system can also create invoices, which are sent straight to the customer once products have shipped. Or, create and transmit required import and export documentation required for cross-border shipments. It automatically collects an archive of shipment and delivery data as well to reduce errors and ensure on-time delivery and better customer service.
ERP and supply chain management processes are especially helpful in streamlining coordination between businesses and vendors. When suppliers are connected to your ERP system, they can work more effectively with you to meet your goals and reduce bottlenecks, such as recognizing when certain supply inventories are low and ensuring resource availability.
With more visibility and transparency, businesses can create smarter strategies around how they use their resources, from parts to personnel. ERP software can give your team a detailed, real-time look into your operations so you can see where things are going well and where they’re not, allowing you to target specific inefficiencies for better outcomes.
Though ERP systems are available as on-premise solutions, cloud ERP software has become popular in recent years. The major benefits of cloud ERP are dedicated data security and mobility. Using a cloud-hosted ERP solution means that the system can be accessed anywhere, anytime on mobile devices as long as there’s an internet connection. This allows for quicker action without the need for team members to be together, which can be valuable with the fast-moving aspects of supply chains.